Amex cuts the value of its rewards cards but still beats the big banks in value

Kelly Emmerton

15 Nov 2018

redactor/hero-images/473/amex-cut-points-still-beat-big-banks_content.jpg

American Express, long the favourite for spenders chasing big rewards points balances, has today announced decreases across the earn rates of many cards in its rewards card range. But if you’re ready to trade in your Amex card, don’t be too hasty - amongst a trend of slipping rewards programs, it may still be one of the best value cards around.

Mozo data shows that rewards value has been steadily declining for the last two years, since the RBA made changes to interchange fees charged on credit cards. And Amex is just the latest in a long string of card providers making changes to rewards.

“There has been a lot of change in the rewards credit card market this year and with Amex now signalling an overhaul of its program, many people will be wondering how best to extract value from their card,” says Mozo Director Kirsty Lamont.

“While Amex card holders will see a decline in the value of the points they can earn from April next year, the good news our analysis shows their cards will still outperform the big four banks when it comes to delivering gift cards and flights.”

Mozo data shows that the average net value of an American Express card will fall 27% from its 2016 value when the changes come into effect next April - significantly less than the 89% average fall over the past two years suffered by the big four banks.

Average rewards net value across all rewards cards

You might be wondering what exactly that means when it comes to earning and redeeming rewards points on your American Express plastic. The answer is that you’ll need to spend more to get the same rewards - but Amex customers will still spend considerably less than big bank customers.

Even taking into account the changes to American Express’ points value and earn rates, Amex cardholders are still looking at a spend of $5,516 less than a big bank customer when it comes to a gift card, or $3,639 less for a free flight, on average.

How do Amex spends stack up against the big 4 banks?

“Although these are quite significant changes, it’s clear Amex still offers one of the best value rewards cards when compared to the big four banks. So if you love rewards, it’s worth doing your research to understand how much you’ll now have to spend on your card to earn a gift card or a flight,” Lamont said.

Changes to American Express rewards cards - effective 15 April 2019

So what exactly has changed? Here’s the nitty gritty of it.

The Amex Explorer Card, Platinum Edge Card and Essential Credit Card, which earn points in American Express’s own rewards program, emerged unscathed from the changes, but other airline cards in the American Express lineup dropped a quarter of a point per $1 spent.

How many points per $1 does an Amex card earn now?

The big change for the value of American Express rewards cards was not actually the earn rate, but the redemption value of the points earnt. For example, snagging a $100 gift card will now require 20,000 points to be redeemed, up from the previous 13,500.

For those converting to airline points, 1 point earnt on an American Express card can now be redeemed for 0.5 Velocity points, down from 1 Velocity point on the Platinum Edge Card and 0.75 Velocity points on the Essential and Explorer cards.

How much do you need to spend on American Express for a $100 gift card or domestic flight after April 15?

“These changes might come as a shock to the system, but when you look at the big picture, American Express cards are on the whole still really great value,” said Mozo Director Kirsty Lamont.

Key to getting top value from your rewards credit card is finding the piece of plastic that fits your spending style. You can check out the Mozo Rewards Revealer to find your match, or take a look at some rewards card options below.

*Rewards net value is derived by calculating the number of points earned based on an annual spend of $20,000, then calculating how many Syd-Mel one-way flights can be redeemed using the points earned. An assumed flight cost was used and the annual fee deducted to arrive at a rewards net value.

Hot rewards cards 2018

Rates updated daily. Advertiser disclosure.

  • St.George Amplify Signature

    Earn up to 200,000 Bonus Amplify Rewards Points over 2 years (130k yr 1, 70k yr 2) when you spend $12k on eligible purchases each year. $139 reduced first year annual card fee (normally $279). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.

    Amplify Rewards

    $279 $139 in the first year

    200,000

    1.5 points uncapped

    • -

    • 19.74% p.a.

    • 0% p.a. for 6 months and then 21.49% p.a.

    • 21.49% p.a.

    • 55

    • 3.00%

    • $15.00

    • 1.5 points per dollar on Visa, uncapped

    • Never

    • 200,000

    • -

    • 212,000 points

    • 22,200 points

    • • Concierge

      • Travel Insurance

      • Extended Warranty

      • Purchase Protection

      • Guaranteed Pricing

      • Rental Car Excess Cover

    Read our Mozo Review to learn more about the Amplify Signature

    Details Close

  • Apply By 05 April 2021

    American Express Qantas Ultimate Card

    Receive 100,000 bonus Qantas Points when you apply online by 5 April 2021, are approved and spend $3,000 on your new Card within the first 3 months. T&Cs apply. New Card Members only. Mozo Experts Choice Qantas Frequent Flyer Premium Credit Card Winner 2020^. T&C’s apply

    Qantas Frequent Flyer

    $450

    100,000

    1.25 points uncapped

    • -

    • 20.74% p.a.

    • No current offer

    • 44

    • 3.00%

    • $30.00

    • 1.25 points per dollar on Amex, uncapped

    • Never

    • 100,000

    • 8,000 points

    • 110,400 points

    • 18,770 points

    • • Travel Insurance

      • Purchase Protection

      • Account alerts by SMS

    Read our Mozo Review to learn more about the Qantas Ultimate Card

    Details Close

  • Apply By 28 February 2021

    NAB Qantas Rewards Signature Card

    NABs fastest way to earn Qantas Points. 130,000 bonus Qantas Points when you spend $3,000 on everyday purchases within 60 days of account opening and keep the card open for 12 months. 7 complimentary insurances when you meet eligibility criteria including Overseas Travel Insurance.

    Qantas Frequent Flyer

    $395 $295 in the first year

    130,000

    1 point up to $5,000/month, then
    0.5 points up to $20,000/month

    • -

    • 19.99% p.a.

    • 0% p.a. for 6 months and then 21.74% p.a. (2.00% balance transfer fee)

    • 21.74% p.a.

    • 44

    • 3.00%

    • $15.00

    • 1 point per dollar on Visa, up to $5,000 per month, then
      0.5 points per dollar on Visa, up to $20,000 per month

    • Never

    • 130,000

    • 8,000 points

    • 110,400 points

    • 18,770 points

    • • Concierge

      • Travel Insurance

      • Extended Warranty

      • Purchase Protection

      • Guaranteed Pricing

      • Domestic Hotel Burglary Insurance

    Read our Mozo Review to learn more about the Qantas Rewards Signature Card

    Details Close

  • BankSA Amplify Signature

    Earn up to 200,000 Bonus Amplify Rewards Points over 2 years (130k yr 1, 70k yr 2) when you spend $12k on eligible purchases each year. $139 reduced first year annual card fee (normally $279). New cards only, Eligibility criteria and T&Cs apply. Offer ends 2nd March 2021.

    Amplify Rewards

    $279 $139 in the first year

    200,000

    1.5 points uncapped

    • -

    • 19.74% p.a.

    • 0% p.a. for 6 months and then 21.49% p.a.

    • 21.49% p.a.

    • 55

    • 3.00%

    • $15.00

    • 1.5 points per dollar on Visa, uncapped

    • Never

    • 200,000

    • -

    • 212,000 points

    • 22,200 points

    • • Concierge

      • Travel Insurance

      • Extended Warranty

      • Purchase Protection

      • Guaranteed Pricing

      • Rental Car Excess Cover

    Read our Mozo Review to learn more about the Amplify Signature

    Details Close

  • American Express Qantas Discovery Card

    Receive up to 1.75 Qantas Points for every $1 spent on Card purchases (T&Cs apply). No annual fee for the life of the card. T&C’s apply. Mozo Experts Choice Qantas Frequent Flyer Credit Card Winner 2020^.

    Qantas Frequent Flyer

    $0

    No current offer

    0.75 points uncapped

    • -

    • 20.74% p.a.

    • No current offer

    • 44

    • 3.00%

    • $30.00

    • 0.75 points per dollar on Amex, uncapped

    • Never

    • No current offer

    • 8,000 points

    • 110,400 points

    • 18,770 points

    • • Purchase Protection

      • Account alerts by SMS

    Read our Mozo Review to learn more about the Qantas Discovery Card

    Details Close

^See information about the Mozo Experts Choice Credit cards Awards